ECB expands EUREP, offering €50 billion in euro liquidity to global partners

The European Central Bank made a significant move to strengthen the euro’s position in international banking. This bank is making its emergency loan program available to central banks throughout the world.

On February 14, 2026, the ECB’s senior decision-making committee announced adjustments to the EUREP, which provides euros to other central banks during times of financial market turbulence.

Global access replaces limited regional program

Before this change, only eight countries near Europe could use this program. These included Romania, Hungary, Albania, and Montenegro. Now, almost every central bank in the world can apply to join.

The only banks excluded are those connected to money laundering, funding terrorists, or facing international penalties. Each bank that gets approved can borrow up to 50 billion euros. They need to put up good-quality euro bonds from European governments as security for the loans.

The new rules start in July 2026, and banks will have full access by the third quarter. This is much more money than banks could borrow before.

The ECB also dropped an old rule that required banks to lend the borrowed money to their own country’s banks. Now they can use the euros however they need to. The ECB said it will stop sharing details about how much each country borrows. Instead, it will only release combined weekly numbers to keep things private.

Applications are submitted via a formal request letter from the central bank’s governor directly to the ECB president.

ECB president cites geopolitical risks as driver

At the Munich Security Conference that same day, Christine Lagarde, the president of the European Central Bank, discussed these adjustments. She cited a globe rife with political unrest, disrupted supply lines, and fierce corporate competitiveness. According to her, the new program is faster, easier to use, and permanent. When financial market issues arise, this should increase public confidence in the euro.

The setup is similar to what the U.S. Federal Reserve does with its FIMA program. That program gives foreign government institutions access to dollars backed by U.S. Treasury bonds to keep markets stable. The ECB wants to create the same kind of safety net for the euro.

The euro still has a long way to go to catch up with the dollar. The euro makes up about 20 percent of global foreign exchange reserves held by central banks, while the dollar accounts for roughly 60 percent. But having a reliable backup source of euros could slowly change this balance.

When central banks and investors know they can get euros quickly if needed, they might be more willing to hold euro assets. This could lead to more trade, lending, and investment using euros.

Financial experts say these emergency programs usually sit unused during normal times. But just knowing they exist matters a lot. When market stress hits, they can make a real difference in keeping things stable.

Europe has been working toward less dependence on other countries’ financial systems as the world economy becomes harder to predict. Making EUREP available to more banks fits into this bigger plan.

“This facility also reinforces the role of the euro. The availability of a lender of last resort for central banks worldwide boosts confidence to invest, borrow and trade in euros, knowing that access will be there during market disruptions.” Lagarde said. “In a world where supply chain dependencies have become security vulnerabilities, Europe must be a source of stability – for ourselves and for our partners.”

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